The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-03-11
THEB. 60. DEAL ADMITTED
BY PRESIDENT GARRETT TO
BE TRUE.
The Deal Hurried by the Passage
OF the Interstate Com.
merce Bill.


deal. He would give no definite idea
OF the particulars of the scheme, but
from his remarks the inference was
drawn that the Baltimore and Ohio
railroad has become factor in syn
dictate that is to control something like
national raj way, reaching from Can
ada to the Gulf OF Mexico, and prob.
ably from New York TO the extreme
West. 1t is generally believed that
the biggest railroad deal on record has
been or is about to be made, and that
the passage of the interstate commerce
bill hurrit d the affair to q settlement.
Mr.. Sully has been active in
arranging the details of the
scheme, and he is the only one
positively known to be conc erned
with it. But a complete chain is bs-
leved to have besn formed OF COM.
panies operating connecting roAdp run
ming the entire length Of the North
American Continent Opinions d fer
as to whether single shsrs of Balti-
more and Ohio stock has been or will
be transferred, but the belief is gain.
ing ground that the deal involves not
only the road itself, but also its tele.
graph, express and sleeping car in
terest. the widest sort of talk is
freely indu ged in, but no actual facts
can be obtained from anyone in q po-
sition to know anything about it.
Many are inclined 10 believe that the
stock, 1900 shares, held by the Johns
Hopkins trustees, or at least a consid.
cradle portion of it has been placed
hA
new syndicate, but the $4,000 shares
held by the city of Baltimore cannot
be touched without special act OF the
City Council. The 5000 shares left
in trust by the late John W. Garrett
can be disposed OF, as the will did not
forbid sale, but simply advised that
It be held in trust for twenty years, 30
that controlling interest might be
secured If advantageous terms were
offered. Mr.. Garrett today told gen.
tleman at the Merchants Club that
he might rest assured that whatever
was done would be for the best inter.
ests Of Baltimore, but further infor
nation he could not give Just now.
Flom this it was inferred that the
scheme was not fully contaminated,
and that important developments
might be expected in the near future.
WHAT THE TRIBUNE SAYS:
New YORK, March 10.-The Tribune
Of tomorrow will say: "The negotia-
tions for the transfer of the control of
the Baltimore and Ohio railroad to
a New York syndicate, have not yet
been carried to successful issue. 1t
is reported that the option obtained
from President Garrett by Alfred
Sully expired yesterday and that Mr..
Sully was unable to raise money to
meet the first payment. While the |
exact terms Of the contract are rot |
known, ii has been established that |
$10,O0O,000 of the $l6,O00,000 re.
CURED for the purchase of
$4,000 shares at 500 was to be
paid in cash. The stock, however,
was to be placed in trust until the |
payment of the remaining $4,000
000, on which years time was given,
had been completed. 1t appears that
the each payment Of 81 100000 was to
be paid yesterday. The sum was
not sent to Baltimore, but in place of
the money request for an extension
of the privilege was forwarded. 1t is
not known that any reply to the me
sage VAS received. The most plausible
excuse for the failure to exercise the
option was the statement that the
purchasing syndicate desired longer
time for an investigation of the
condition of the Baltimore and
Ohio Company. The assets and
liabilities of the company were
stated in round figures when the
privilege on the stock YVES obtained
and many persons who had expressed
a willingness to join in the undeitak-
ing were reluctant on calm ref ction
to complete the bargain without an
expert examination of the sffairs of
the company. A member of the pro-
posed syndicate expressed the general
sentiment in about these words:
1--WE would have no objection about
entering upon this agreement, but as
business men of ordinary prudence
and capacity we must insist upon a
fuller ard more exact report of the
value Of the property we are buying.
1t must not be forgotten that the
Baltimore and Ohio has several inn
portant qusrrels on it's hsnds-in rail-
road questions with the Pennsylvsnia
railroad, in telegraph matters with the
Western Union Company, and in ex.
press matters with all the large
express companies. 1t would
seem advisable, under the
circumstances that persons buy
ing control of the company should
ascertain, first OF all, whether these
disputes could be easily adjusted. 1
think the present failure has been
due chiefly to the premature an.
neuncement of the plan before it was
learned whether these important dis
putes could be amicably arranged" An
adjourned meeting of the Executive
Committee of the Richmond and West
Point Terminal Company was held |
yesterday. The option of Mr.. Sully,
president Of the company, was again
under discussion, but the meet
ing adjourned, subject to the
call of the president, with
out taking defnite action. 1t is
understood that the proposal of Mr.. !
Garrett to reliD9uish control of the
Baltimore and Ohio Railroad, had
partly in view an amalgamation Of his
company with the Southern system Of !
railroads now embraced in the ter
minal company. The terms for such
q union, If any formal conditions were !
presented were not agreed upon, and
1t was said by member of the COM
mittee to he doubtful if a substantial
basis for such an agreement could be
reached. 1t was stated in emphatic
terms that under no circumstances
could the terminal company issue any
more obligations for the acquisition of d;
the Baltimore and Ohio or any other =
1t was part of the pro- !
posed scheme to sell OF lease the Balti- :
more and Ohio system to the Western a
Union Company. The most of the :
telegraph lines stand on the :
eompany's books at about 100000
and it was thought by the projectors oil :
the plan that the Western Union :
Company would buy the system at
the cost price for the sake of relieving